What is Spot DCA?

What Is Spot DCA?

Spot DCA is a long-term investment strategy that reduces risk by regularly investing a fixed amount of money over time. Regardless of market conditions, investors continue to buy assets at set intervals. This approach is known as Dollar Cost Averaging (DCA).

By investing the same amount consistently, investors buy more units when prices are low and fewer when prices are high, helping to mitigate market volatility and reduce the risks of trying to time the market.

Why Choose Spot DCA?

Spot DCA is suitable for users who want to:

• Build long-term wealth steadily
• Avoid emotional or short-term trading decisions
• Reduce the impact of market fluctuations
• Take advantage of price dips without active management

During periods of high market volatility, Spot DCA allows you to accumulate more assets at lower prices with the same investment amount, potentially leading to higher average returns.

Key Parameters of Spot DCA

When creating a Spot DCA strategy, you’ll need to configure the following parameters:

• Investment Coin: The asset used to fund your investment (currently, only USDT is supported).
• Target Coin(s): You can freely choose up to 10 cryptocurrencies to invest in. When the strategy is triggered, the system will purchase the selected coins based on your configured proportions.
• Investment Amount per Cycle: The total amount of money invested in each cycle (e.g., 100 USDT per week).
• Investment Interval: The frequency of each investment cycle — daily, weekly, or monthly.

Disclaimer

Spot DCA is a trading tool and should not be regarded as financial or investment advice provided by BYDFi. The profitability of Spot DCA may be affected by one-sided market conditions or improper parameter settings. You may adjust your Spot DCA strategy based on market conditions. By using this tool, you unconditionally accept all BYDFi terms and rules. Please be fully aware of the risks associated with cryptocurrency investments and operate cautiously. You agree that all investment actions on BYDFi.com represent your true investment intentions and that you unconditionally accept the potential risks and returns of your investment decisions.